TO: Mayor and Commissioners
FROM: Tennille DeCoste, Human Resources Director
THROUGH: Donald B. Cooper, City Manager
DATE: September 8, 2016
Title
EMPLOYEE HEALTH BENEFIT PREMIUM COSTS EFFECTIVE OCTOBER 1, 2016
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Recommended Action:
Recommendation
Motion to Award Agreements for employee benefits and approve the premium costs effective October 1, 2016.
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Background:
On March 7, 2016, a Request for Proposals RFP No. 2016-076 was issued to obtain proposals for the City Employee Benefit programs. On July 12, 2016, Commission approved the motion to approve the Selection Committees final ranking and authorized negotiations to finalize the benefit services and costs with the following firms:
Employee Benefit(s) Top Ranked Firm
Health, HRA/FSA United Healthcare Group, Inc.
Dental Metropolitan Life Insurance Company
Vision EyeMed Vision Core LLC
STD, LTD, FMLA Life Insurance Company of America NA / CIGNA
EAP OptumHealth, a wholly-owned subsidiary of UnitedHealtcare Group, Inc.
Administration and the City’s employee benefits consulting group, Gehring Group, has conducted negotiations and finalized the plan designs and premium costs. The result of these comprehensive negotiations is a group health program with lower employee out of pocket costs, reduced premiums costs of 14% to the City, and enhanced benefits. Administration is also recommending the employee premiums for both the Core and Buy-up HMO plans be based on both the medical benefit option elected and themployees’s annual salary which will reduce employee premiums overall by 7%. The City, following its current collective bargaining agreements, will continue to provide the HMO Core plan at no cost to the employee.
The Employee Assistance Program (EAP) negotiated with OptumHealth, a wholly owned subsidiary of UnitedHealthcare Group, reduces the City’s annual cost of this employee benefit by 32%.
The dental ...
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